PERSONNEL MANAGEMENT

1
PERSONNEL MANAGEMENT

• - IES MCRC,
• Bandra.

2
Transfers, Promotions Voluntary Retirements

• - Lecture 4

3
Transfers

• Reasons for Transfers
• Principles of transfers
• Types of Transfers
• Benefits of Transfers
• Problems with Transfers
• Transfer Policy

4
Transfer

• It is a change in job assignment
• In the same level of hierarchy
• Requiring similar skills
• Involving approximately
• same level of responsibility,
• same status
• same level of pay.

5
Reasons for Transfers

• There is a shortage of employees in one
  department or plant because of a heavy demand
• Removal of the incompatibilities between the
  worker and boss
• Correction of faulty initial placement of
  employee
• Change in interests and capacities of an
  individual
• Monotony of an employees job
• Unsatisfactory climate for an employees health
• Family related issues, female employees on
  marriage join their spouses.

6
Principles of Transfers

• The frequency of transfers minimum period
  between transfers need to be decided upon
• The authority which would handle transfers need
  to be decided upon
• The criteria for entertaining transfers need to
  be decided upon
• The area of the organization over which transfers
  can be made need to be defined.
• The effect of transfer on the pay seniority of
  the transferred employee may be clearly evaluated
• Transfers should be clearly defined as permanent
  or temporary
• The employee performance needs to be assessed
  before transfer.

7
Types of Transfer

• Production Transfers shortage/ excess of labour
• Replacement Transfers senior employee replaces
  junior employee
• Versatility Transfers clerical employee
  transferred from 1 section to another
• Shift transfers Rotation between night day
  shifts
• Remedial Transfers Employee requests transfer

8
Benefits of Transfers

• Improve employee skills
• Reduce monotony, boredom
• Remedy faulty placement decisions
• Prepare the employee for challenging assignments
  in future
• Stabilize changing work requirements in different
  departments/ locations
• Improve employee satisfaction morale
• Improve employee-employer relations

9
Problems with Transfers

• Inconvenient to employees who otherwise do not
  want to move
• Employee may not fit in the new location/
  department
• Shifting of experienced hands may affect
  productivity
• Discriminatory transfers may affect employee
  morale

10
Transfer Policy contains

• Specifications of circumstances under which an
  employee will be transferred
• Name of the superior authorized responsible to
  initiate a transfer
• Jobs from to which transfers will be made,
  based on job analysis

11
Transfer Policy contains

• The region or unit of the organization within
  which transfers will be administered
• Reasons which will be considered for personal
  transfers, their order of priority
• Norms to decide priority when 2 or more employees
  request transfers, like priority of reason,
  seniority

12
Transfer Policy Contains

• Specification of basis for transfer, like job
  analysis, merit, length of service
• Specification of pay, allowances, benefits
• Other facilities extended to transferee like
  special allowance for packaging luggage,
  transportation

13
Promotion

• Purposes of Promotion
• Principles of Promotion

14
Promotion

• It refers to upward movement of an employee
• From
• current job
• To
• another job
• That is higher in
• pay,
• responsibility and/ or
• organizational level

15
Purposes of Promotion

• To motivate employees to higher productivity
• To attract retain the services of qualified
  competent people
• To recognize reward employee efficiency
• To increase employee organization effectiveness
• To fill up higher vacancies within the
  organization
• To build employee loyalty, morale sense of
  belongingness
• To impress upon others that opportunities are
  available to them too in the organization.

16
Principles of Promotion

• The HRM must make it clear whether to fill up
  higher positions by internal promotions or
  recruit people from outside
• A further decision on the basis of promotion
  should be made by the HRM
• Basis of Seniority
• Basis of Competence

17
Promotion Policy contains

• A fair equitable basis for promotion, i.e.
  merit/ seniority or both
• It should provide equal opportunities for
  promotion in all categories of jobs, departments
  regions of an organization
• Every eligible employee should be aware of
  various career growth avenues.

18
Promotion Policy contains

• Norms for judging merit, length of service,
  potentiality etc.
• Mode of acquiring new skills, knowledge etc. to
  prepare for career advancement
• Appropriate authority should be entrusted with
  responsibility

19
Promotion Policy contains

• Detailed records of service, performance etc. to
  be considered
• Applied uniformly to all employees
• Alternatives to promotion when deserving
  candidates are not promoted due to lack of
  vacancies at higher level

20
Promotion Policy contains

• A provision for appeal against (alleged)
  arbitrary actions of management its review.
• Promotions may be for a trial period to minimize
  the mistakes of promotion
• Promotion policy must be communicated to all
  employees, trade union leaders etc.

21
VRS

• Objective
• Eligibility
• Procedure

22
Voluntary Retirement Schemes

• It involves
• Employees, who voluntarily retire
• After putting in
• minimum qualifying service
• Normal retirement benefits are
• calculated paid.

23
VRS

• Objective
• To achieve optimum manpower utilization.
• To improve the average age-mix of the employee.
• To improve the overall skill and efficiency of
  the employee.
• To downsize surplus and unproductive labor force.

24
VRS- Eligibility (sample)

• The employees must have been in regular service
  of the PSU continuously for not less than, say
  specified period of Ten (10) years.
• No employee whose continuance is considered
  essential for the Public Enterprises concerned
  shall be permitted to be covered under the
  scheme.
• An employee shall not be eligible to retire
  Voluntarily within three years of his normal
  retirement.
• Certain cadre of employees, with 7 (seven) years
  of completed and uninterrupted service will be
  entitled for a special package.

25
Procedure (sample)

• The eligible employees who desire to seek
  Voluntary Retirement may apply to the competent
  authority through his/her Head of the Dept. in
  the prescribed format.
• The decision of the competent Authority regarding
  the acceptance/rejection of the VR application
  shall be communicated to the employee within
  specified period of 30 (thirty) days of
  submission of the application.

26
Pick the most appropriate one

• Benefits of transfers
• Improve employee skills
• Reduce monotony, boredom
• Both the above

• Basis of employee promotion
• Production Transfers
• Basis of seniority Competence
• Replacement transfers

27
Match the term with its definition

1. Transfer
2. Promotion
3. VRS

1. It refers to upward movement of an employee from
   current job to another job that is higher in pay,
   responsibility and/ or organizational level
2. It involves employees, who voluntarily retire
   after putting in minimum qualifying service
   Normal retirement benefits are calculated paid.
3. It is a change in job assignment in the same
   level of hierarchy requiring similar skills
   involving approximately same level of
   responsibility, same status same level of pay

28
Activity

• Develop a policy on Employee Promotion for a
  suitable organization in the following sectors
• IT
• Banking
• Pharmaceutical
• FMCG.
• Make assumptions wherever necessary

29

1. The HRM must make it clear whether to fill up
   higher positions by internal promotions or
   recruit people from outside
2. A further decision on the basis of promotion
   should be made by the HRM
3. Basis of Seniority
4. Basis of Competence
5. A fair equitable basis for promotion, i.e.
   merit/ seniority or both
6. It should provide equal opportunities for
   promotion in all categories of jobs, departments
   regions of an organization
7. Every eligible employee should be aware of
   various career growth avenues.
8. Norms for judging merit, length of service,
   potentiality etc.
9. Mode of acquiring new skills, knowledge etc. to
   prepare for career advancement
10. Appropriate authority should be entrusted with
    responsibility
11. Detailed records of service, performance etc. to
    be considered
12. Applied uniformly to all employees
13. Alternatives to promotion when deserving
    candidates are not promoted due to lack of
    vacancies at higher level
14. A provision for appeal against (alleged)
    arbitrary actions of management its review.
15. Promotions may be for a trial period to minimize
    the mistakes of promotion
16. Promotion policy must be communicated to all
    employees, trade union leaders etc

30
Thank You